Obtaining external funds for your company can be a rather difficult mission for an entrepreneur because it involves quite a few steps during which you have to use all your imagination in order to get an investor interested in your idea. As both venture capitalists and angel investors receive thousands of business proposals every month, they donΓÇÖt have the time to analyze and pitch all of them. This is why, if you want your business idea to be reviewed, you have to use certain teasing strategies in order to arouse investorΓÇÖs interest in your company.
Click here to download your venture capital pitch formula <==== You should know that, directly sending your business plan to a venture capital firm will not help your raise money for your company. The chances of your email passing by unnoticed are extremely high. But what should you do in order to get the attention of venture capitalists? Here are the two methods you should use in order to obtain a pitch:
- Prepare a few lines in which to describe your company and your business idea. This is known as the elevator pitch, the pitch that can be presented in about 3 minutes. You have to use useful information about the gap on the market that your product will cover, the marketing strategies to be used in order to advertise for your product, the financial expectations you have calculated for the following period and the way in which your product raises above the ones of your competitors. This elevator pitch cannot present all the needed information for a venture capitalist, but it can drawn attention upon your business idea. If you are not an expert in raising capital, you should practice this pitch a long time before presenting it to a venture capitalist. You should ask your family and friends to listen to you and criticize the aspects that can still be improved.
- As the actual chances of running into a venture capitalist in order to present him your elevator pitch are rather small for most of the entrepreneurs seeking for funding, there is another method that can help you drawn the attention of venture capitalists towards your business. That is the teasing email. Most entrepreneurs submit their application via email. Their worst mistake is that they send the entire business plan from the beginning. No venture capitalist has the time to read thousands of business plans. So you should firstly send a teasing email which will help you get their attention. This email should be about 200 words long and it should be very carefully organized. You should state your business idea, the demand for your product on the market, your resources and your marketing strategies organized by bullets. A venture capitalist should understand the main idea of your business plan after looking at this email. Also, you should put a time pressure in the email in order to determine the venture capitalist to react to your email. After they have manifested their interest in your company, send them via email the executive summary of your business plan and follow up in order to establish a day for your pitch.
Click here to download your venture capital pitch formula <==== When you have managed to obtain a pitch meeting, you should take care to have a very well prepared pitch and a very professional business plan to present.